Fewer Fines, More Guarantees: Uzbekistan Overhauls Business Rules
Uzbekistan
Uzbekistan plans a major overhaul of its system of state oversight of businesses. Fines across all categories will be reduced by an average of half, while a “presumption of legality” principle will be introduced in disputes between entrepreneurs and the state. The government also plans to expand digital public services and simplify licensing procedures.
Currently, 51 government agencies have the authority to impose financial penalties. Under the proposed rules, an entrepreneur will be presumed innocent until guilt is established by a court, and no fines or other sanctions will be imposed. A “warning for the first mistake” rule will give businesses 10 days to correct a first-time violation that has not caused harm to life, health or property.
Half of all business-related public services will move to a “silence means consent” principle. If an application is not reviewed within the established deadline, it will automatically be considered resolved in favour of the entrepreneur. Licences and permits for more than 30 types of activities are to be abolished, issuance periods for another 35 will be reduced two- to threefold, and 10 permits will be converted into notification-based procedures.
The tourism sector will receive $50 million for hotel construction, reconstruction and equipment. Entrepreneurs will have access to loans in local currency at 16% for 10 years. Services provided by tour operators to foreign tourists will be treated as exports and exempt from VAT. Customs incentives for importing tourist buses, electric buses and minibuses will be extended for another year.
Since the beginning of the year, Uzbekistan has received 8 million foreign tourists, while the average length of their stay has increased to eight days. The reduced land and property tax rate for hotels will remain in effect until 2030.
President Shavkat Mirziyoyev said future economic growth should be driven by the creation of high-paying jobs, higher added value and expanded access to foreign markets. New growth areas include export-oriented businesses in Tashkent, full-cycle textile and machinery production in Andijan, Fergana and Namangan, tourism and creative industries in Samarkand, Bukhara and Khorezm, and green energy, IT and artificial intelligence in Karakalpakstan.
Half of all business-related public services will move to a “silence means consent” principle. If an application is not reviewed within the established deadline, it will automatically be considered resolved in favour of the entrepreneur. Licences and permits for more than 30 types of activities are to be abolished, issuance periods for another 35 will be reduced two- to threefold, and 10 permits will be converted into notification-based procedures.
The tourism sector will receive $50 million for hotel construction, reconstruction and equipment. Entrepreneurs will have access to loans in local currency at 16% for 10 years. Services provided by tour operators to foreign tourists will be treated as exports and exempt from VAT. Customs incentives for importing tourist buses, electric buses and minibuses will be extended for another year.
Since the beginning of the year, Uzbekistan has received 8 million foreign tourists, while the average length of their stay has increased to eight days. The reduced land and property tax rate for hotels will remain in effect until 2030.
President Shavkat Mirziyoyev said future economic growth should be driven by the creation of high-paying jobs, higher added value and expanded access to foreign markets. New growth areas include export-oriented businesses in Tashkent, full-cycle textile and machinery production in Andijan, Fergana and Namangan, tourism and creative industries in Samarkand, Bukhara and Khorezm, and green energy, IT and artificial intelligence in Karakalpakstan.
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